On this very rough day for equity bears, there’s just one “First Buddy” for me, which is GDX, my gold miners short. Over the course of the past half year, gold has generally done great, but it seems to have reached a peak in April (around the time that equities were wrapping up their final freak-out) and has been engaged in a series of lower highs since then.
Of more especial interest to me is the Gold Sector index, which over the very long term has hammered out a magnificent pattern. Recently, we got exceptionally close to major resistance, and yesterday I figured it was time to get into a GDX short, in spite of my overall enthusiasm for precious metals.
At the moment, GDX is down about 2.5%, and I’ve tightened up my stop-loss order to 53.10
